Kingdom Bank in doldrums

Under pressure: The bank of Botswana might be forced to act after KBAL refused to surrender its banking license
Under pressure: The bank of Botswana might be forced to act after KBAL refused to surrender its banking license

Kingdom Bank Africa Limited (KBAL) is teetering on the brink of collapse weighed down by acute liquidity constraints that have seen the offshore bank fail to meet depositor obligations and pay workers’ salaries.

Industry sources told BusinessWeek that the offshore bank, which is 100 percent owned by Zimbabwean banker Nigel Chanakira, is failing to pay back some of the depositor funds as most of its assets were tied-up in illiquid assets and advances to customers, whose recoverability is not guaranteed.

The bank’s 20 workers have also not received regular salaries since November last year, as the bank is surviving on a hand-to-mouth basis. Since it is an offshore bank, KBAL depositors and debtors are all foreign based, predominantly in Zimbabwe.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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